Map:Click to enlarge
Moncrief Oil International, Inc. (MOIL) of Texas, through its
affiliate, Kura Valley Development Company, Ltd., signed an Exploration
and Development Production Sharing Agreement (EDPSA) for the
Padar and adjacent onshore area in the Lower Kura River Valley.
The area is located 90 km southwest of Baku and encompasses approximately
1,050 sq km with a 40 percent relinquishment provision after
1 year. The minimum work program consists of three exploration
wells over the course of three years. Ownership in the block
consists of MOIL and its partner ISR of Azerbaijan (80%), and
SOCAR (20%), with MOIL as the operator. The EDPSA block contains
the Padar structure, Kharami structures, as well as a number
of other geologic features of interest.

The
Contract was signed by SOCAR President Natig Aliyev and Moncrief
Oil International, Inc. Chairman Richard W. Moncrief.Moncrief
anticipates assuming operations in the block in the fall of 1999
upon ratification of the contract by Azerbaijan's parliament.
Azeri experts estimate potential recoverable reserves to be up
to 100 million tons. If successful, total capital expenditures
for the development of the area are in the range of $500 million
to $1 billion over the life of the project.

Richard Moncrief of Moncrief Oil with Natig Aliyev of SOCAR
at the Signing Ceremony for Padar.

Moncrief Oil is a privately owned family concern which has been
producing oil and gas in the U.S. for over 60 years and is headquartered
in Fort Worth, Texas. Moncrief has discovered and played a prominent
role in the development of numerous major oilfields in Texas,
Louisiana, Alaska, Oklahoma, New Mexico, Utah, California, Florida,
California, Montana, Wyoming, North Dakota, Alabama and Mississippi.